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World
23 May 2017

Trump unveils budget plans, sets to cut healthcare/social spending

US President Donald Trump is set to unveil his first full budget to lawmakers on Tuesday.

His budget plan calls for $3.6 trillion in government spending cuts over the next decade to trim the US' burgeoning annual deficit.

Healthcare and food assistance programs for the poor would receive massive cuts.

In this timeline, we look at the contents of Trump's budget plan.

In context

Trump's budget plans calls for massive spending cuts
Trump wants 47% cut for Medicaid, 25% for food stamps

Medicaid cuts

Trump wants 47% cut for Medicaid, 25% for food stamps

Medicaid is a health program that provides medical insurance to poor Americans. The budget plan calls for nearly $1.5 trillion Medicaid spending cuts.

The Supplemental Nutrition Assistance Program, which provides food stamps to the poor, would receive a 25% cut amounting to $191 billion over the next 10 years.

The families of undocumented workers also won't get access to tax breaks.

Trump wants to cut welfare program by 13%

The Temporary Assistance for Needy Families program, or welfare, would receive a 13% cut amounting to $21.6 billion over 10 years. The program, which provides essential items such as food and shelter to poor families, has already received dramatic cuts since the '90s.

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Agencies

Federal agencies may get massive budget cuts under Trump budget

Trump's budget plan calls for massive cuts for US federal agencies, equivalent in role to India's union ministries.

This includes a 31.4% cut to the Environmental Protection Agency budget, 29.1% cut to the State Department, 20.5% to Agriculture, 19.8% to Labor, 16.2% to Health and Human Services, 15.8% to Commerce, 13.2% to Housing and Urban Development, 12.7% to Transportation, and 10.9% to Interior.

Trump's budget plan assumes 3% growth, experts disagree

Unrealistic forecast?

Trump's budget plan assumes 3% growth, experts disagree

White House budget director Mick Mulvaney said Trump's budget cuts would boost economic growth to 3% over the next decade.

The Congressional Budget Office has forecast 1.9% growth, which Mulvaney said "assumes a pessimism about" the American economy.

Marc Goldwein, head of Committee for a Responsible Federal Budget, said the budget numbers don't add up and called the 3% growth assumption "unrealistic at best."

Funding increase

Trump wants increase in defense and national security spending

Trump's budget plans calls for a 4.6% increase in defense spending by $25.4 billion annually.

The Department of Homeland Security would receive a 6.8% increase, which includes $2.6 billion for border security.

It allocates $1.4 billion to construct Trump's proposed wall along the US-Mexico border.

The Department of Veteran Affairs would receive a 5.8% hike.

Budget plans calls for $200bn infrastructure spending

The budget includes $25 billion for a plan to provide parents six-weeks of leave after child birth or adoption. It also includes $200 billion to incentivize state and local governments to spend more on construction of roads, bridges and other infrastructure projects.

Details

Trump's budget proposes converting defense grants to Pakistan into loan

Trump's budget proposes turning the US' grants to Pakistan for defense equipment transfers into a loan.

The move is part of Trump's efforts to cut foreign aid and divert money into increasing US military spending.

The White House said it's ultimately up to the State Department to take a final call over the proposal.

Unlikely

Will Trump's budget be passed by Congress?

The presidential budget's main purpose is to lay down the administration's official stance on fiscal policy.

The US Congress, which has final control on federal spending, often ignores presidential budgets.

Trump's budget plan in particular is unlikely to become law as it advocates several politically sensitive cuts.

It will face opposition by Democrats and moderate Republicans who fear its social impact.

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